[Brazil] Protests: Peaceful protest

Supply-chain risk briefing

1) Summary On March 20, 2025, rural workers in Petrolina, Pernambuco state, Brazil held peaceful protests against water supply shortages in the Pontal area. The demonstration took place in front of the regional development corporation headquarters and is currently classified as low-risk.

2) Supply-chain impact

• Petrolina is a major agricultural hub in the São Francisco River basin, and continued water shortages could disrupt fruit and vegetable production based on irrigation agriculture
• The region is a key production area for Brazilian export crops such as mangoes and grapes, potentially causing indirect impacts on global supply chains if agricultural productivity declines
• While currently at the level of peaceful protests, unresolved water supply issues could escalate into additional conflicts related to agricultural labor
• This structural problem could also have long-term effects on agricultural product transportation via São Francisco River waterways

3) Watch points

• Whether water supply improvement measures for the Pontal area and response plans from the regional development corporation are announced
• Trends in agricultural production and export volumes in the Petrolina region, particularly conditions during the dry season